Evolution of Management Theory

Management Science I Prof. M.Thenmozhi
Indian Institute of Technology Madras
EVOLUTION OF MANAGEMENT
THEORY
Dr.M. Thenmozhi
Professor
Department of Management Studies
Indian Institute of Technology Madras
Chennai 600 036
E-mail: mtm@iitm.ac.in
Management Science I Prof. M.Thenmozhi
Indian Institute of Technology Madras• Early management theory consisted of numerous attempts at getting to know these newcomers to industrial life at the end of the nineteenth century and beginning of the twentieth century in Europe and united states. • These includes

– Scientific management
– Classical organization theory
– Behavioural school and management science.
• As you study these approaches keep one important fact in mind. • The managers and theorists who developed this assumption about human relationships were doing so with little precedent.
• large scale industrial enterprise was very new.
• some of the assumption that they made might therefore seem simple or unimportant to you, but they were crucial and to ford and his contemporize. Management Science I Prof. M.Thenmozhi
Indian Institute of Technology Madras
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SCIENTIFIC MANAGEMENT SCHOOL CLASSICAL ORGANIZATIONAL
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MANAGEMENT SCIENCE
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KEY MANAGEMENT THEORY AN
OVERVIEW
Management Science I Prof. M.Thenmozhi
Indian Institute of Technology Madras• Fedrick w Taylor (1986-1915) rested his philosophy on four basic principles. 1. The development of a true science of management so that the best method for performing each task could be determined.

2. The Scientific selection of workers so that the each workers would be given responsibility for the task for which he or she was best suited. 3. The scientific education and development of workers.

4. Intimate friendly cooperation between management and labor. • The scientific management schools
1. Scientific management theory arose in part from the need to increase productivity.
2. In the united states especially, skilled labor was in short supply at the beginning of the twentieth century.
3. The only way to expand the productivity was to raise the efficiency of workers.4. Therefore ,Fredick W.Taylor,Henry Gantt,and Frank and Lillian Gilberth devised the body of principles known as Scientific management theory • Taylor contended that the success of these principles required ”a complete mental revolution” on the part of management and labor.

Management Science I Prof. M.Thenmozhi
Indian Institute of Technology Madras
• Rather than quarrel over profits both side should increase production ,by so doing ,he believed profits would rise to such an extend that labor have to fight over them.
• In short taylor believed that management and labor had common interest in increasing productivity.
1. Taylor based his management system on production line time studies. instead of relying on traditional work methods, he analyzed and timed steel workers movements on a series of jobs.
2. Using time study he broke each job down into its components and designed the quickest and best method of performing each
components. In this way he established.
• How much workers to do with the equipment and materials in hand. he also encourage
• Employers to pay more productive workers higher rate than others. using a “scientifically correct “rate that would benefit both the company and workers.
• Thus the workers were urged to surpass their previous performance standards to earn more pay .Taylor called his plane...

...Henceforth, managerial theory has become crucial in the way managers manage complex organizations. It has to be unequivocally emphasized that managers who mix managementtheories in their day-to-day practice, have better chances of managing their organizations more efficiently and effectively to achieve both individual and organizational objectives. Therefore, managers of contemporary organizations ought to appreciate the important role they play in their respective organizations if they are to achieve set goals. Secondly, there is need to promote excellence among all persons in organizations, especially among managers themselves.
1.1 DEFINITION OF MANAGEMENTManagement is the art, or science, of achieving goals through people. Since managers also supervise, management can be interpreted to mean literally
“looking over” – i.e., making sure people do what they are supposed to do.
Managers are, therefore are expected to ensure greater productivity or, using the
current jargon, ‘continuous improvement’.
More broadly, management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims (Koontz and Weihrich 1990). In its expanded form, this basic definition means several things. First, as managers, people carry out
the managerial functions of planning, organizing, staffing, leading, and...

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EARLY MANAGEMENT
Organizations and managers have existed for thousands of years. The Egyptian pyramids and the Great Wall of China were projects of tremendous scope and magnitude, and required good management. Regardless of the titles given to managers throughout history, someone has always had to plan what needs to be accomplished, organize people and materials, lead and direct workers, and impose controls to ensure that goals were attained as planned.
Another example of early management can be found in the city of Venice, which was a major economic and trade center in 1400s. the venetians developed an early form of business enterprise and engaged in many activities common to today’s organizations. The venetians used warehouse and inventory systems to keep track of materials, human resource management functions to manage the labor force and an accounting system to keep track of revenues and costs.
Two historical events significant to the study of management are work of Adam Smith, in his book,’ The Wealth of Nations’, in which he argued brilliantly for the economic advantages of division of labor (the breakdown of jobs into narrow, repetitive tasks). The Industrial Revolution is second important pre-twentieth-century influence on management. The introduction of machine powers combined with the division of labor made large, efficient factories possible. Planning, organizing,...

...Evolution of managementtheory: The case of production management in construction
Aguinaldo dos. Santos; Powell, James Alfred; Sarshar, Marjan. Management Decision40. 7/8 (2002): 788-796.
In the past 100 years production management has evolved from a set of heuristic ideas to a portfolio of somewhat developed concepts and principles. "Just-in-time" and "total quality management" integrate most of the modern concepts and principles in the field. Furthermore, seminal studies carried out within production, such as the Gilbreth/Taylor, Hawthorne and Tavistock studies, have given significant contribution to the evolution of managementtheory. This paper presents the context of production managementevolution and assesses the application of some heuristic production approaches within construction sites of Brazil and England. The study revealed that, although the production managementtheory evolved significantly, construction practices do not apply the theory in a systemic and comprehensive manner. Clearly, lack of motivation and poor instruments for enabling "learning" are the central cause of this problem.
According to McFarland (1979) the word "manage" seems to have come into English usage directly from the Italian word "maneggiare", that means "to handle". This...

...In this paper, we examine how managementtheory concerning appropriate management practices has evolved in modern times, and look at the central concerns that have guided its development. First, we examine the so-called classical managementtheories that emerged around the turn of the twentieth century. These include scientific management, which focuses on matching people and tasks to maximize efficiency; and administrative management, which focuses on identifying the principles that will lead to the creation of the most efficient system of organization and management. Next, we consider behavioural managementtheories, developed both before and after the Second World War, which focus on how managers should lead and control their workforces to increase performance. Then we discuss management science theory, which developed during the Second World War and which has become increasingly important as researchers have developed rigorous analytical and quantitative techniques to help managers measure and control organizational performance. Finally, we discuss business in the 1960s and 1970s and focus on the theories that were developed to help explain how the external environment affects the way organizations and managers operate.
By the end of this chapter, one would understand the ways in which...

...the factory system and the division of labor.
Major works of Adam Smith
The Theory of Moral Sentiments (1759)
An Inquiry Into the Nature and Causes of the Wealth of Nations (1776)
Essays on Philosophical Subjects (published posthumously 1795)
Lectures on Jurisprudence (published posthumously 1776)
Lectures on Rhetoric and Belles Lettres
Frederick W. Taylor
sometimes called "the father of scientific management." He was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. The Principles of Scientific Management, published in 1911. His approach is also often referred to, as Taylor's Principles, or frequently disparagingly, as Taylorism. Taylor's scientific management consisted of four principles:
1. Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.
2. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.
3. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" (Montgomery 1997: 250).
4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks
Taylor's contribution to organizational theory
This required an...

...﻿ManagementTheories:-
Organisations have a variety of goals. They usually direct their energies and resources to achieve these goals. An organisation possesses human as well as non human resources that are put to use in the service of specific goals. Management is that force that unifies these resources. Without management acting as a unifying force, it is not possible to convert resources into useful products.
Management is defined in different words by different theorists.
According to Harold koontz, management is the art of getting things done through and with people in formally organised groups.
According to Henry Fayol, to manage is to forecast and plan to organise, to command, to coordinate and to control.
According F.W.Taylor, Management is the art of knowing what you want to do in the best and cheapest way.
Hence, it has been described in different ways as a process, as a discipline, as art and science of decision making and leadership, as an art of increasing productivity, as integration of efforts etc.
Why study managementtheories?
Theories are perspectives with which people make sense of their world experiences. Formally, a theory is a coherent group of assumptions put forth to explain the relationship between two or more observable facts. John Clancy calls such perspectives “invisible powers” to...

...INTRODUCTION - THE EVOLUTION OF MANAGEMENTTHEORY
During the industrial revolution that took place in Western Europe and North America in the 18th century; various machines were built and the economy which was based on manual labor was replaced by machines. Then factories of large scale in the garment sector, automobile sector etc emerged rapidly and the need to increase organizational efficiency and effectiveness has guided the evolution of managementtheory till today. Managers, theorists, researcher searched for way of how to utilize their resources to the maximum and thereby attain efficiency and effectiveness.
PRE-CLASSICAL MANAGEMENT THOUGHT
In the pre-classical era, that is during the emerge of various mass production factories after the Industrial revolution, there were two men most responsible for destroying the Old England and launching the world towards industrialization. Adam Smith brought about the revolution in economic thought and James Watt's steam engine provided cheaper power that revolutionized English commerce and industry. In doing so, they also laid the foundation for modern notions of business managementtheory and practice.
According to Smith, division of labor provided managers with the greatest opportunity for increased productivity. Recognized as Watt's greatest breakthrough, in 1971 he developed a steam engine. This...